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The issuer used various service organizations to process certain revenue transactions and recorded the related revenue based on information provided by the service organizations. The firm obtained the service auditors' reports which specified necessary user controls that addressed the accuracy and completeness of this information. The firm used this information in its substantive testing of this revenue but did not test or test the user controls over the accuracy and completeness of this information. (AS 2601.14)

The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer used certain data to recognize certain revenue. The firm did not identify and test controls over the accuracy and completeness of this data. (AS 2201.39)

The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer used certain data to recognize certain revenue. The firm used this data to substantively test certain revenue. The firm did not perform any procedures to test or identify and test controls over the accuracy and completeness of this data as discussed above. (AS 1105.10)

For revenue that was generally earned upon receipt of the products by customers the firm selected a sample of revenue transactions from sales commission listings obtained from the issuer and performed certain substantive procedures to test revenue. The following deficiencies were identified: - The firm did not perform any substantive procedures to test or in the alternative identify and test controls over the accuracy and completeness of the population of revenue transactions from the sales commission listings used to select the sample of revenue transactions. (AS 1105.10)

The issuer recognized multiple types of revenue. The following deficiency was identified: · The firm did not perform procedures to test or test any controls over the accuracy and completeness of certain issuer-produced information it used to test two types of revenue. (AS 1105.10)

The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative standalone selling prices (SSPs). The firm selected a sample of transactions to test revenue. The following deficiencies were identified: · The firm used issuer-prepared reports to substantively test revenue but did not perform any procedures to test or test any controls over the accuracy and completeness of these reports. (AS 1105.10)

The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative standalone selling prices (SSPs). The firm selected a sample of transactions to test revenue. The following deficiencies were identified: · The issuer recognized certain revenue based on electronic activity. The firm used activity information produced by the issuer to evaluate whether the issuer satisfied its performance obligations related to this revenue but did not perform any procedures to test or test any controls over the accuracy and completeness of this information. (AS 1105.10)

The firm identified certain of the issuer's locations as “in-scope” locations for purposes of testing controls over the revenue. The firm selected for testing certain controls over the processing and recording of the revenue that consisted of the issuer's review and/or approval of (1) the detail sales price list (2) sales price and other information in contracts (3) certain sales reports and (4) changes in estimated contract costs. The following deficiencies were identified: · The firm did not perform any procedures to test or test any controls over the accuracy and completeness of the lists from which it selected its samples for testing. (AS 1105.10)

For certain other revenue the following deficiencies were identified: · The firm selected for testing a control over the processing and recording of this other revenue that consisted of the issuer's review and approval of the revenue distribution. The firm did not identify and test any controls over the accuracy and completeness of a report used in the operation of this control. (AS 2201.39)

For certain other revenue the following deficiencies were identified: · The firm used issuer-prepared reports to substantively test this other revenue but did not perform any procedures to test or test any controls over the accuracy and completeness of these reports. (AS 1105.10)

The issuer recognized revenue using certain inputs and assumptions to measure its progress toward the completion of its performance obligations. The firm's approach for substantively testing the estimate of progress toward completion was to review and test management's process. The firm did not sufficiently evaluate the reasonableness of this estimate because the firm did not test the accuracy and completeness of the inputs the issuer used to determine the estimate. (AS 1105.10; AS 2501.11)

For another type of revenue the firm selected transactions for testing that met certain criteria. The firm did not perform any substantive procedures to test or in the alternative test controls over the accuracy and completeness of issuer-generated invoices used in the firm's testing of this type of revenue. (AS 1105.10)

To test certain revenue the firm (1) confirmed certain revenue transactions and received two confirmations back with exceptions (2) selected revenue transactions above a threshold and a sample of transactions below that threshold for detail testing and (3) performed cut-off testing. The firm did not sufficiently perform substantive procedures to test or in the alternative identify and test controls over the accuracy and completeness of issuer-prepared information the firm used in its substantive procedures because the firm limited its procedures comparing the issuer-prepared information to other issuer-provided information. (AS 1105.10)

The firm did not perform procedures to test or test any controls over the accuracy and completeness of certain issuer-produced system-generated data used in its substantive testing of revenue. (AS 1105.10)

The firm did not test or test any controls over the accuracy and completeness of certain data from a report used to substantively test revenue. (AS 1105.10)

The firm did not test or test any controls over the accuracy and completeness of certain data used to substantively test revenue beyond obtaining evidence of payment for selected transactions. (AS 1105.10)

The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm used system-generated data to substantively test certain revenue but did not test or sufficiently test controls over the accuracy and completeness of this data. (AS 1105.10)

In performing its cut-off testing the firm did not test or in the alternative test any controls over the accuracy and completeness of the system-generated reports from which it made its selections for testing. (AS 1105.10)

The firm selected for testing controls that consisted of the review of (1) journal entries to record revenue and (2) month-end reconciliations. The firm did not identify and test any controls over the accuracy and completeness of certain revenue reports that the control owners used in the operation of these controls. (AS 2201.39)

The issuer stored revenue data from its point-of-sale system in multiple databases including a primary database that was used to record data in the general ledger and a redundant database. The firm determined that certain change management and logical access information technology general controls over the primary database were ineffective. The firm identified a compensating control that consisted of a manual comparison of revenue data from the redundant database to the general ledger but the firm did not test beyond inquiry controls that addressed the accuracy and completeness of the revenue data in the redundant database. (AS 2201.68)

The issuer recognized certain revenue from contracts using a measure of progress method. The following deficiencies were identified: · The firm did not identify and test any controls over the accuracy and completeness of certain data used in the operation of these controls. (AS 2201.39)

The issuer recognized certain revenue from contracts using a measure of progress method. The following deficiencies were identified: · For certain of this revenue the firm did not identify and test any controls over the accuracy and completeness of labor hours that were an input into the issuer's calculation of this revenue. (AS 2201.39)

With respect to user access: · The firm did not identify and test any controls over the accuracy and completeness of certain reports used in the operation of this control. (AS 2201.39)

The firm's substantive procedures to test revenue consisted of performing a test of details for the first 11 months of the issuer's fiscal year and a substantive analytical procedure for the remaining month. The following deficiencies were identified: · The firm did not perform procedures to test the accuracy and completeness of certain historical data used in its substantive analytical procedure. (AS 2305.16)

The issuer used multiple IT systems to initiate process and record transactions related to certain revenue at two of these business units. The firm tested controls over user access to these systems. The following deficiencies were identified: · The firm selected for testing a control over the periodic review of user access. For both business units the firm did not identify and test any controls over the accuracy and completeness of the user access lists that the control owner used in the operation of this control. (AS 2201.39)

The issuer used multiple IT systems to initiate process and record transactions related to certain revenue at two of these business units. The firm tested controls over user access to these systems. The following deficiencies were identified: · As a result of these deficiencies the firm's testing of the accuracy and completeness of data used in the performance of the monthly financial information review control discussed above for these two business units was not sufficient. (AS 2201.46)

With respect to both user access and change management: · For each of these IT systems the firm did not perform any substantive procedures to test or in the alternative test any controls over the completeness of certain system-generated reports that it used to make its selections for testing controls over change management and/or user access. (AS 1105.10)

As a result of the audit deficiencies discussed above the firm did not perform sufficient substantive procedures to test or sufficiently test controls over (1) the completeness of certain system-generated reports that the firm used to make its selections to test various controls over certain revenue and related accounts and (2) the accuracy of certain system-generated data it used in its substantive testing of certain revenue and related accounts. (AS 1105.10)

The firm did not identify and test any controls over the accuracy and completeness of the customer order information from various source systems that the issuer used to record revenue. (AS 2201.39)

The issuer offered various forms of sales incentives to customers that were recorded as deductions from revenue. The following deficiencies were identified: · The firm did not perform any substantive procedures to test certain of these sales incentives beyond comparing the recorded balances to system-generated reports. (AS 2301.08)

The issuer recognized certain revenue over time based on estimates of the goods and services it would provide to customers and the payments it would receive for those goods and services. The following deficiencies were identified: · The firm's substantive procedures to test this revenue consisted of performing tests of details and substantive analytical procedures. The firm used certain system-generated data in its substantive testing of this revenue but did not test or in the alternative test any controls over the accuracy of these data. (AS 1105.10; AS 2305.16)

Certain of the issuer's revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the relative standalone selling price. The issuer disclosed that it used observable prices to determine the standalone selling prices for certain performance obligations in these arrangements. The following deficiencies were identified: · The firm selected for testing a control that consisted of the issuer's review of certain standalone selling prices. The firm did not identify and test any controls over the accuracy and completeness of certain reports that the control owner used in the operation of this control. (AS 2201.39)

The firm used system-generated data and reports in its testing of revenue. The following deficiencies were identified: · The firm did not perform any procedures to test or test any controls over the accuracy and/or completeness of one of these reports and certain other system-generated data certain of which the firm used in developing its expectations for substantive analytical procedures beyond observing the issuer generate this report. (AS 1105.10; AS 2305.16)

For one type of revenue the firm did not identify and test any controls that addressed the risk related to the completeness and accuracy of data transferred from the issuer's revenue system to the general ledger. (AS 2201.39)

Certain of the issuer's revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer's estimate of the relative standalone selling prices. The firm performed procedures to test the accuracy of certain issuer-prepared data the firm used in its testing of the relative standalone selling prices. The extent of these procedures was not sufficient because the firm calculated its samples of items to test assuming a control reliance strategy but did not take into account that one of the controls the firm relied upon was ineffective. (AS 1105.10)

For this type of revenue the issuer entered into arrangements where it could either be acting in the capacity of a principal or an agent and as a result would record revenue on either a gross or net basis. The following additional deficiencies were identified: · The issuer used point-of-sale systems to accumulate and transmit transaction data to certain of the issuer's IT systems and recorded revenue based on these data. The firm did not identify and test any controls that addressed the accuracy and completeness of these data. (AS 2201.39)

For this type of revenue the issuer entered into arrangements where it could either be acting in the capacity of a principal or an agent and as a result would record revenue on either a gross or net basis. The following additional deficiencies were identified: · The firm used transaction data from the issuer's point-of-sale systems in its substantive testing. For one business unit the firm did not sufficiently test the accuracy and completeness of these data because the firm (1) did not select its sample from the full population and (2) for most of its selections limited its procedures to comparing the data to reports generated from the same transmitted data. (AS 1105.10)

For this type of revenue the issuer entered into arrangements where it could either be acting in the capacity of a principal or an agent and as a result would record revenue on either a gross or net basis. The following additional deficiencies were identified: · The firm used transaction data from the issuer's point-of-sale systems in its substantive testing. For one business unit the firm did not perform any procedures to test or identify and test any controls over the accuracy and completeness of these data. (AS 1105.10)

For certain revenue at one business unit the following deficiencies were identified: · The firm selected for testing a control that included the issuer's review of the accuracy and completeness of customer contract information in the issuer's system that it used to record revenue. In its testing of the operating effectiveness of this control the firm did not test this aspect of the control. (AS 2201.44)

The issuer used a service organization to accumulate revenue data initiated in and processed by the issuer's various IT systems and the issuer recorded certain revenue based on these data. The following deficiency was identified: · The firm did not identify and test any controls over the accuracy and completeness of the revenue data that had been accumulated by the service organization from the various IT systems. (AS 2201.39)

For this revenue the following additional deficiencies were identified: · The firm did not identify and test any controls over the accuracy and completeness of certain information used to record revenue. (AS 2201.39) In connection with our review the issuer reevaluated its controls over this revenue and concluded that a material weakness existed that had not been previously identified. The issuer subsequently reflected this material weakness in a revision to its report on ICFR and the firm revised its opinion on the effectiveness of the issuer's ICFR to express an adverse opinion and reissued its report.

As a result of the firm's control testing deficiencies the firm did not perform sufficient substantive procedures over this revenue as follows: · For certain of this revenue the firm did not perform procedures to test or sufficiently test controls over the accuracy and completeness of certain system-generated data and reports the firm used in its substantive testing. (AS 1105.10)

For this revenue the following additional deficiencies were identified: · For certain of this revenue the firm did not perform procedures to test or test controls over the accuracy and completeness of certain information used in its substantive testing. (AS 1105.10)

The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm selected for testing certain controls over revenue. The following deficiency was identified: · The firm did not perform procedures to test or identify and test any controls over the accuracy and completeness of certain system-generated reports it used to make its selections for testing the operating effectiveness of certain controls over revenue. (AS 1105.10)

The issuer reported revenue from the sale of products. The following deficiencies were identified: - The firm did not identify and test any controls over the accuracy and completeness of information used in the operation of one of the above controls and another control over the review of journal entries related to revenue. (AS 2201.39)

The firm's internal inspection program inspected this audit and reviewed this area but did not identify certain of the deficiency below. The firm selected for testing various controls over revenue but did not identify and test any controls over the accuracy and completeness of certain system-generated data that were used in the operation of these controls. (AS 2201.39)

The firm's internal inspection program inspected this audit and reviewed this area but did not identify certain of the deficiency below. For certain types of revenue the firm did not perform any procedures to test or test any controls over the accuracy and completeness of certain system-generated data the firm used in its substantive testing. (AS 1105.10)

The firm's internal inspection program inspected this audit and reviewed this area but did not identify certain of the deficiency below. For another type of revenue that included an estimate of variable consideration in the transaction price the following deficiency was identified: · The firm's approach for substantively testing this estimate was to test the issuer's process. The firm did not test or test any controls over the accuracy and completeness of certain system-generated data that the issuer used to determine this estimate. (AS 1105.10)

The firm's internal inspection program inspected this audit and reviewed the revenue area but did not identify the deficiency below. The issuer used multiple service organizations to host and/or maintain information technology (IT) systems that the issuer used to initiate process and record transactions related to this revenue. · The firm selected for testing certain other controls over user access but did not perform procedures to test or test any controls over the accuracy and completeness of certain information that the firm used in its testing. (AS 1105.10)

The firm's substantive procedures to test revenue included testing a sample of transactions. The firm used information from the issuer and from external sources in its testing of certain of these transactions. The firm did not (1) test or test any controls over the accuracy and completeness of the issuer-produced information and (2) evaluate the reliability of the external information. (AS 1105.04 .06 and .10)